Statistics from the Employee Benefit Research Institute determined that Americans age 55 and older face an increased rate of debt. From 1992 to 2013, the number of families with individuals in that age range struggling with debt rose from 53.8 percent to 65.4 percent. People who are retired have also amassed certain types of debt, mostly from credit cards, mortgages, and car loans.
Debt can be a crippling situation for someone in that age range, as it’s hard to make enough money to pay off their deficits. Since many companies no longer offer retirement packages, seniors are left in a bad position, trying to find jobs after retiring from a full career. Fortunately, there are better options available to the older population when it comes to solving this crisis. There are specific debt settlement programs that elderly citizens can participate in to alleviate some of the stress.
With the prospect of debt negotiation, a person is paired up with a third-party company representative who negotiates a way for the individual to be able to pay back their debt. The professional speaks directly with the creditors and explains the situation that the individual in debt is a senior citizen who has very few working years left and is not in a financial condition to be able to pay back their entire debt. The company then decides whether they’ll pursue the full amount or if they want to reduce the individual’s deficit into a reasonable number so that it gets paid.
Debt consolidation is a solution that can be used by a person who has several debts to pay off. The individual gets a loan to pay off all their debts at once, consolidating them into a single payment. Doing this eliminates multiple payment requirements and makes the total amount cheaper because the interest is reduced or even eliminated.
Senior citizens who are having difficulty paying back what they owe can also rely on debt management. Companies pair individuals with a debt management adviser who can come up with a reasonable solution in the form of a debt management plan (DMP) so that they can settle their accounts. The professional sends the DMP to the person’s creditors and negotiates with them to reduce payment amounts.
Credit counseling is an option that involves the individual pairing up with a credit expert who evaluates all their financial documents and devises an excellent strategy to help the person to pay off the amount in arrears and avoid future debt.
The best thing you can do is call in expert help. A bankruptcy attorney can take a look at your case and tell you what your best options are. Also, a lawyer can negotiate with creditors on your behalf, giving you a voice against these large corporations.
Northeast Louisiana Bankruptcy Attorneys
It’s important to understand the risks to your future retirement and heirs when undertaking a plan to eliminate debt and restore your credit. Eliminate any confusion about what assets qualify for protection or how to avoid confiscations by recruiting an attorney to help you navigate this process.
E. Orum Young Law has over 35 years of experience assisting Northeast Louisiana clients to find the best options for their financial issues. Let us help get your credit restored and stop the debt collectors from calling you. Contact us today at (318) 450-3192 to schedule your free consultation.